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General Dynamics Wins $358M FMS Contract for M1A1 Upgrades

A General DynamicsGD business wing − General Dynamics Land Systems ("GDLS") - has won a contract from the U.S. Army for the conversion of M1A1 vehicles to the M1A1 situational awareness configuration. The contract is valued at $358 million.

This contact falls under a foreign military sales ("FMS") program for Morocco. It covers 150 M1A1 vehicles that are required to be upgraded to the M1A1 situational awareness configuration. Work is slated for completion by Feb 28, 2015.

Manufactured by GDLS, the M1A1 Abrams main battle tank is fitted with armor upgrades and additional mission-critical technologies to bolster crew situational awareness.

This situational awareness package boosts the M1A1 Abrams tank's fighting potential. It provides an electronic graphic of the battlefield to soldiers with icons for friendly and enemy forces. It has a speed of 41.5 miles per hour and has a range of 288 miles. Its main armament is a 120mm smoothbore gun.

Based in Falls Church, VA, General Dynamics engages in mission-critical information systems and technologies; land and expeditionary combat vehicles, armaments and munitions; shipbuilding and marine systems; and business aviation.

The company is one of the largest U.S. defense contractors whose revenue exposure is spread over a broad portfolio of products and services that help it to keep the overall growth momentum steady. It is one of the two contractors equipped to build nuclear-powered submarines in the U.S.

Although the company's total backlog declined 1.5% year over year to $70 billion at the end of the second quarter, its funded backlog at the end of the quarter grew 9.3% year over year to $55.4 billion.

General Dynamics, holding a Zacks Rank #2 (Buy), has performed consistently over the past four quarters, with a positive earnings surprise of 8.44%.

Some other well-placed stocks in the aerospace and defense industry include Leidos Holdings, Inc. LDOS , Northrop Grumman Corporation NOC and Lockheed Martin Corp. LMT . While Leidos sports a Zacks Rank #1 (Strong Buy), Northrop and Lockheed carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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